Organisational structures - EduqasHorizontal structures and hierarchical structures

An organisational structure is how a business organises its staff to represent the different layers of management. This information can be displayed in the form of a chart. There are two main types of organisational structure used in businesses – hierarchical (or tall) and horizontal (or flat).

There are a number of key terms that apply to organisational structures:

• span of control - the number of staff that a manager has responsibility for
• chain of command - the route by which instructions and communications flow from the top to the bottom of a business, explaining who is answerable to whom
• delayering - a process where a business removes layers of its management to make its structure more flat
• delegation - a process where tasks are given to members of staff, who then give tasks to employees further down the chain of command
• subordinates - members of staff below a manager in the chain of command

Hierarchical (tall) structure

A hierarchical or ‘tall’ structure has many leaders and layers of management, and businesses with this structure often use a ‘top-down’ approach with a long chain of command. In a hierarchical structure, managers will have a narrow span of control and a relatively small number of subordinates or staff. The communication pathway within a tall structure is usually long, because communication has to pass through each element in the chain of command.

Horizontal (flat) structure

A horizontal or ‘flat' structure is an organisational structure with only a few layers of management. In a flat structure, managers have a wide span of control with more subordinates, and there is usually a short chain of command. The communication pathway when using this structure is short and often results in quicker, more effective communication. Smaller businesses or those adopting a more modern approach to management are most likely to use a flat organisational structure.